Question
A stock is currently priced at $81 and will move up by a factor of 1.85 or down by a factor of 0.72 over the
A stock is currently priced at $81 and will move up by a factor of 1.85 or down by a factor of 0.72 over the next period. The risk-free rate of interest is 2.1 percent. What is the value of a call option with a strike price of $82? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
| Value of the call option |
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Public Finance
Authors: Harvey S Rosen, Ted Gayer
9th International Edition
0071267883, 9780071267885
